[Code of Federal Regulations]

[Title 12, Volume 6]

[Revised as of January 1, 2006]

From the U.S. Government Printing Office via GPO Access

[CITE: 12CFR614.4130]



[Page 111-112]

 

                       TITLE 12--BANKS AND BANKING

 

                 CHAPTER VI--FARM CREDIT ADMINISTRATION

 

PART 614_LOAN POLICIES AND OPERATIONS--Table of Contents

 

             Subpart C_Bank/Association Lending Relationship

 

Sec. 614.4130  Funding and discount relationships between Farm Credit 

Banks or agricultural credit banks and OFIs.



    (a) A Farm Credit Bank or agricultural credit bank shall not advance 

funds to, or discount loans for, an OFI, as defined in Sec. 611.1205 of 

this chapter, except pursuant to a general financing agreement.

    (b) The Farm Credit Bank or agricultural credit bank shall deliver a 

copy of the executed general financing agreement and all related 

documents, such as a promissory note or security



[[Page 112]]



agreement, and all amendments of any of these documents, within 10 

business days after any such document or amendment is executed, to the 

Chief Examiner, Farm Credit Administration, or to the Farm Credit 

Administration office that the Chief Examiner designates.

    (c) The total credit extended to the OFI, through direct loan or 

discounts, shall be consistent with the Farm Credit Bank's or 

agricultural credit bank's lending policies and loan underwriting 

standards and the creditworthiness of the OFI. The general financing 

agreement or promissory note shall establish a maximum credit limit 

determined by objective standards as established by the Farm Credit Bank 

or agricultural credit bank.



[63 FR 5724, Feb. 4, 1998, as amended at 67 FR 17917, Apr. 12, 2002]